In the Workstem system, when an employee resigns, certain operations must be performed to ensure proper handling of the employee's departure information and related payroll calculations. This article will explain the process in detail.
1. Perform the termination operation in the people information to update the employee’s status to "Processing Termination".
In the people information list, locate the corresponding employee information, enter the employee’s profile page, click "Terminate", input the relevant termination date, and click confirm. After confirmation, the employee’s status will change from "Active" to "Processing Termination".
2. Handle the remaining annual leave for the terminated employee.
If the employee has remaining annual leave that needs to be compensated as part of their final payroll, go to [Leave] > [Leave Balance], filter by terminated employees, locate the specific employee, and check their remaining annual leave balance.
If there is no need to settle annual leave upon termination, this step can be skipped.
3. Perform Final Payment Calculation for the Terminated Employee
Navigate to [Payroll] > [Pay Run] , click on One-time Pay Run to perform the final payment calculation for the terminated employee.
When creating the final payment, you can name the payroll calculation as you wish. It is recommended to name it "Final Payment for [Employee Name]" to clearly indicate that it is for a specific employee’s termination.
There is no need to modify the payroll period or attendance period, as the system will automatically calculate the employee’s salary for the month on a pro-rata basis according to the termination date.
If there are multiple employees resigning in the same month, you can select "Former employees under this pay rule" when creating the final payment. If you are processing for a single employee only, you can select "Manually add", and then proceed with the calculation.
Note: It is recommended to perform the final payment calculation before running the regular monthly payroll, as terminated employees are still included in the regular payroll calculation.
By completing the final payment first, you can avoid any duplicate salary calculations.
Additionally, before closing the regular payroll for the month, ensure that all temporary calculations (including final payments) are closed, so that the system can smoothly proceed into the next month’s payroll cycle.
4. Update the Employee’s Status
After confirming that the final payment calculation is accurate, you need to go to the [People], find the employee under "Processing Termination", click View to enter the employee’s profile page, and then click "Finish Termination."
Once this operation is completed, the employee’s status will be updated to fully terminated, meaning the employee's information can no longer be edited and they will appear in the Terminated Employee list.
5. Process the Tax Form Calculation
At this point, the employee’s salary and basic information have been fully processed. The corresponding tax form must be submitted to the tax authorities within one month before the employee’s cessation of employment.
Before running the tax form calculation, it is recommended to first verify that the employee’s tax information is complete and accurate, including details such as ID number, area code, name, gender, residential address, postal code, and marital status.
After ensuring all information is correct, go to [Tax] > [Calculation], select IR56F to perform the calculation, and review whether the employee’s total income from April 1st of the current fiscal year to the termination date is accurate.
Once you have confirmed the tax form calculation results are correct, you can close the tax form calculation, download the corresponding tax form, and send it to the employee.
